Options for First Home Buyers

Are you renting? Your dream of owning your own home could be possible sooner than you think.

It might surprise you to know that the repayments on a Police Credit Union home loan could be less than the average weekly rent in SA and NT.

For example:

The average house rent in Adelaide is $450 per week* and $420 per week in Darwin#Whereas a home loan of $400,000 over 30 years at 2.99%p.a. would require a repayment of $388 per week.^

Of course, you will need to have some savings behind you for the deposit and to cover fees and charges like stamp duty and conveyancing etc. But don’t worry if you haven’t quite reached your deposit saving goal yet – there are some different options to help you go from renting to owning your own home a lot quicker.

Family Guarantee

A Family Guarantee (also known as a Family Pledge) may be an option to help you get started if you have a low deposit. Guarantors can be immediate family members such as parents or siblings who have enough equity in their home and offer part of this equity as security for your loan.

The equity in their property can help make up for any shortfall in saving the minimum 20% deposit required to avoid the need for Lenders’ Mortgage Insurance (LMI) which could save you thousands or increase your borrowing power. You can learn more about LMI here.

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Disclaimer

^Weekly repayment calculation based on Better Home Loan interest rate of 2.99 % p.a./3.04 % p.a Comparison Rate. Interest rates and information current as at 29/01/2020 and subject to change. Comparison rate is based on a secured $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Terms, conditions, fees, charges and lending criteria apply. Full details upon request. Please consider if the product is right for you.
*As at December 2019. Source: https://www.realestate.com.au/neighbourhoods/adelaide-5000-sa
#As at September 2019. Source: https://nteconomy.nt.gov.au/housing